The major US stock indices are trading higher in early US trading as there is some dip buying ahead of the FOMC decision.
There are some that are forward looking who see a more hawkish Fed as potentially good news for inflation that will ultimately pave the way for a bottom and rebound. Admittedly, it is a forward-looking view. There are a lot of hurdles ahead, but for today after 2 days of sharp declines, a rebound is welcomed.
A snapshot of the market currently shows
- Dow industrial average up 334 points or 1.1% at 30700
- S&P up 51 points or 1.36% at 3785
- NASDAQ index up 178 points or 1.64% 11005
- Russell 2000 up 21.11 points or 1.24% at 1728.84
Looking at the NASDAQ index, the decline yesterday took the price below its 200 week moving average currently at 1.0796.98. The low price reached 10733.04. The price yesterday yesterday closed above that level at 10828.35. As a result technically, traders can hang a hat on the fact that the 200 week moving average was tested, and the move below failed.
Going forward a move back below the 200 week moving average may not get as good of a response. Nevertheless for now holding the level is a positive and helping the sentiment today.